Contract specifications of Cotton Name of Commodity Ticker symbol Basis centre Unit of trading Delivery Type Cotton COTTON118 Ex-Warehouse Rajkot (exclusive of all taxes) 12 Candy Compulsory 48 Candy (100 Bales with average bale weight between 155 kgs to 175 kgs will be delivery equivalent for 48 candy).* Delivery unit Price quotation * Outstanding position for valid delivery for both the buyer as well as the seller on the Exchange platform has to be minimum 48 Candy or in multiples thereof Rs/Candy Tick size Rs 10 Indian Roller Ginned Cotton traded as Shankar 6 or equivalent to Shankar 6 with 1.Staple Length: As per HVI mode of assaying Basis : - 28.5 mm ; no premium above 28.5 mm Below 28.5mm and upto 28 mm discount of 1% on 1:1 Quality specification Below 28mm Rejected 2. Micronaire Basis : 3.7 4.5 For MIC between 3.7 to 3.6 discount of 0.1% For MIC between 3.6 to 3.5 discount of 0.7%, For MIC between 4.5 to 4.9 discount of 0.8% on 1:1 basis MIC below 3.5 and above 4.9 Reject 3. Strength : Minimum 28 GPT with no premium/discount
4. Grades : Standardized grade as per HVI Middling 31-3 accepted upto 41-3 with discount of 3% 5. Trash : Basis : 3.5% Below 3.5% up to 3% no premium Below 3% up to 2% premium of 1% on 1:1 basis 6. Moisture : Basis : 8.5% Above 8.5% and upto 9% accepted with a discount of 0.5% on 1:1 basis Above 9% and upto 9.5% accepted with a discount of 0.5:1 % on 1:1 basis Above 9.5% reject Quantity Variation Average weight of 100 bales to be between 155 kgs to 175 kgs per bale such that the total deliverable lot weight for 100 bales is between 15.5 MT to 17.5 MT. No quantity variation allowed for number of bales. Electronic Delivery Seller shall deliver the goods through Exchange Accredited Warehouse. Goods will have to pass through the Quality Certification process during Delivery Method Delivery Centre inbound delivery. Quality certification of Goods will be done by Exchange authorized assayer. Buyer will receive the goods from the Exchange Accredited Warehouse. *Physical Delivery (Applicable only for the delivery centers in the State of Gujarat) Delivery from Seller s location will be in physical form. Goods will have to pass through the Quality Certification process during inbound delivery. Quality certification of Goods will be done by Exchange authorized assayer. Rajkot (Delivery will be accepted in Exchange accredited warehouse located within
50 km radius from the municipal limits of the center but within Gujarat state only. This limit can be extended by the Exchange up to 100 km from the municipal limits depending on the feasibility and requirements) Sellers can also tender delivery from Kadi, Amreli, Surendranagar,Anjar and Bodeli Additional centre in Gujarat delivery (Delivery will be accepted in Exchange accredited warehouse located within 50 km radius from the municipal limits of the center but within Gujarat state only. This limit can be extended by the Exchange up to 100 km from the municipal limits depending on the feasibility and requirements) Wani and Jalna (Maharashtra), Bhatinda (Punjab), Sirsa (Haryana) and Warangal (Andhra Pradesh). Additional delivery centers in other states Location Premium/Discount for centers in Gujarat Location Premium/Discount for centers in other states The deliveries from these locations can be tendered only if the intention, for giving/taking deliveries from sellers/buyers respectively, matches as per the Exchange prescribed criteria. In case of no matching, deliveries cannot be tendered. Deliveries from these locations will happen only in Demat form Premium and discount for different locations shall be announced by the Exchange before launching of contract. Premium discount for centers in other states would be announced 2 days before the start of intention period as prescribed by the Exchange. Trading Hours Monday to Friday: 10.00 a.m. to 5.00 p.m. Saturday: 10.00 a.m. to 2.00 p.m.
20th day of the delivery month. Contract Expiry Date If 20 th happens to be a holiday, a Saturday or a Sunday then the Expiry date shall be the immediately preceding trading day of the Exchange, which is not a Saturday. New contracts will be available for trading from 11 th day of the month as per Opening of Contract the launch calendar. If the 11 th day happens to be a non-trading day, new contracts would open on next trading day. Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a cooling off period for 15 minutes. Trade will be Daily Price Limit allowed during this cooling off period within the price band. Thereafter the price band would be raised by (+/-) 1%. If the price hits the revised price band (4%) again during the day, trade will only be allowed within the revised price band. No trade / order shall be permitted during the day beyond the revised limit of (+ / -) 4%. Member level: 93, 600 Candy or 15 % of market open interest, whichever is higher. Client level: 31,200 Candy Position Limits Maximum Order Size Final Settlement Price (FSP) The above limits will not apply to bonafide hedgers. For bonafide hedgers the Exchange will decide the limits on a case-to-case basis. Near month limits (Applicable from 28 days prior to expiry date of the contract). Member level: 18,720 Candy or 15 % of the market-wide near month open position, whichever is higher. Client level: 6,240 Candy 576 Candy The Exchange shall adopt the following methodology for arriving at the Final Settlement Price.
Minimum Margin Special Margin Initial The Final Settlement Price (FSP) shall be arrived at by taking the simple average of the last three trading days polled spot prices, viz. E-0 (expiry day), E-1, E-2. In the event of the spot prices of any of the E-1 and E-2 is not available, the spot prices of E-3 would be used for arriving at the average. In case the spot prices are not available for both E-1, and E-2, then the average of E-0 and E-3 (two days) would be taken. If all the three days prices, viz., E-1, E-2 and E-3 are not available, then only one day s price, viz., E-0, will be taken as the FSP. 5% When there is excess volatility, Exchange may impose special margin of appropriate percentage, as deemed fit and proper on either long or short side in respect of all outstanding positions. This margin will remain till such excess volatility persists, after which the same will be relaxed. The Exchange may impose additional margins on both long and short side at Additional Margin such other percentage, as deemed fit. Removal of such Margins will be at the discretion of the Exchange In addition to the above margins, the Regulator may impose additional Regulatory Margin margins on long and/or short side at such other percentage as deemed fit. Removal of such Margins will be at the discretion of the Regulator. Outbound Tolerance Limit Tolerance limit is applicable only for outbound deliveries to the extent of permissible variations based on the repeatability norms as per assaying norms for Cotton. This outbound tolerance limits will be applicable on the initial declared results and variations till the permissible tolerance limits will be considered as good delivery.
Out bound tolerance allowed at the time of delivery Trash +/- 0.5% Fiber Length +/- 0.5 mm Micronaire +/- 0.1 Strength +/- 0.5 GPT Contract Launch Calendar Contract Launch Month Contracts to be launched June 20, 2013 October 2013 and November 2013 July 2013 December 2013 August 2013 January 2014 September 2013 February 2014 October 2013 March 2014